NONG - SpareBank 1 Nord-Norge decides bonus issue, split of the equity capital certificates and strengthening of the equity capital, and establishes the SpareBank 1 Nord-Norge Savings Bank Foundation

In meetings March 29th and March 30th, the Supervisory Board of SpareBank1 Nord-Norge voted to support the proposal of the Main Board of Directors to strengthen the bank's equity capital through issues of new equity certificates up to a value of NOK 600 million. The issues will be carried out as a rights issue of approx. NOK 450 million and a private placement of approx. NOK 150 million. The subscription period in the rights issue is expected to be 12-26 May 2011.

The Supervisory Board also approved the Main Board of Director's proposal to carry out a bonus issue and a split of the equity certificates. In the bonus issue, three existing equity certificates will give the right to receive one new equity certificate. Following the bonus issue, the equity certificates will be split in two. This means that one equity certificate with a nominal value of NOK 50 will become two equity certificates, each with a nominal value of NOK 25. The bonus issue and the split is expected to be registered with the Norwegian Central Securities Depository's ("the VPS") on approximately 5 April 2011.

The Supervisory Board also decided to establish the SpareBank 1 Nord-Norge Savings Bank Foundation, a non-profit foundation with the main purpose to constitute a long term and stable owner in SpareBank 1 Nord-Norge. The foundation will receive a donation of, in total, NOK 154.5 million from SpareBank 1 Nord-Norge.  The establishment of the SpareBank 1 Nord-Norge Savings Bank Foundation is conditional upon approval from the Financial Supervisory Authority of Norway.

The private placement is expected to mainly be directed towards the SpareBank 1 Nord-Norge Savings Bank Foundation, bank employees and members of the Bank's main and regional boards of directors. The issue of new equity certificates towards the savings bank foundation is expected to take place at market value on the time of issue. The issue of equity certificates to employees and board memebers will be rebated and subject to a lock-in period, in line with previous sales of this kind and the bank's desire to stimulate equity certificate ownership among its employees and board members. The Main Board of Directors has also received authorization to direct parts of the private placement towards other investors.

The issue of new equity is subject to approval by the Financial Supervisory Authority of Norway. Arctic Securities, Argo Securities and SNN Markets have been retained as managers of the transaction, and the legal firm BAHR is the bank's legal adviser.

The dates listed in this notice are indicative and may change. Additional information on dividends, bonus issue, split, rights issue and private placement, is available at www.snn.no.

Contact persons at SpareBank 1 Nord-Norge:
CFO  Rolf Eigil Bygdnes; mob +47 905 19774
Attorney-at-law Petter Høiseth; mob +47 415 05035